Southeast Asia bankers and bankers counsel are
lobbying the Indonesian regulator to amend the countrys
Material Transaction rule.
The Indonesian Capital
Markets and Financial Institutions Supervisory Agency
Bapepam) issued new
regulations on Material Transactions in November
The new rule raised the
qualification threshold for material transactions, so that a
transaction is deemed material if its value is equal to over
20% of the equity. The definition of the term 'material
transaction' includes project participation, asset rental,
lending and borrowing of funds, provision of assets as security
and provision of company guarantees.
Speaking at IFLRs Indonesia Forum this week, Jones Day
partner Joseph Bauerschmidt said the rule was the single
biggest impediment to debt capital market deals in 2011.
Lawyers had been working to persuade Indonesias regulator
to revise its...